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Product ID: 406245EAU
 
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Payroll Tax Pitfalls: Preventing IRS Penalties and Personal Liability for Late Payments

OnDemand Webinar (89 minutes)

Gain a better understanding of how the Trust Fund Recovery Penalty works and how a business should respond when under investigation by the IRS.Many business people do not realize or understand the severe consequences of a failure by an employer to withhold and pay over income and social security taxes on its employees. The Internal Revenue Service has the ability to hold individuals personally responsible for the amount of tax that was supposed to be withheld from employee's paychecks. This is known as the Trust Fund Recovery penalty. What many people don't realize is that multiple individuals in a business can be held responsible. Making matters much worse, the Department of Justice in coordination with the IRS has now made it a priority to criminally prosecute some of these individuals. This topic will help explain how the Trust Fund Recovery Penalty works and how a business should respond when under investigation by the IRS. It will suggest practical strategies and defenses to avoid liability. It will also point out the danger signs of a possible criminal referral. This information is critical for employers and anyone representing employers.

Authors

Kevin M. Murphy, Andreozzi Bluestein, LLP

Agenda

Payroll Tax Basics

• Form 941/Form 940 Filing and Payment

• Form 941/Form 940 Penalties

• Abatement of Penalties for Reasonable Cause/First Time Abatement

Trust Fund Recovery Penalty

• Trust Fund vs. Non-Trust Fund

• IRS Revenue Officer Investigation/Form 4180 Interview

• IRS Appeals Considerations

Strategies and Defenses for Minimizing the Penalty

• Meeting With the Client

• Negotiation With the Revenue Officer

• Spreading the Blame/Designation of Payments

Criminalization of the Trust Fund Recovery Penalty

• IRC 6672 vs. IRC 7202

• Danger Signs

• Minimizing Criminal Exposure